Canada Tax Lawyer

Income taxes in Canada make up the bulk of the yearly revenue for the Government of Canada and the provinces.

Tax collection agreements allow different the federal and provincial governments to charge taxes using a single administration and collection agency, the Canada Revenue Agency, or CRA. The federal government levies personal income taxes on behalf of all provinces and territories except Quebec and levies corporate income taxes for all provinces and territories, with the exception of Alberta, Ontario and Quebec. Quebec's income tax system is administered by Revenu Qu?bec, formally known as Minist?re du Revenu du Qu?bec.

Personal and corporate Canadian federal income taxes are both collected using the guidelines of the Income Tax Act. Provincial and territorial income taxes are collected under a number of local provincial statutes.

The Canadian income tax system is a self-assessment administration. Taxpayers calculate their owed taxes by filing a return with the CRA a certain date. The CRA will then review the return, based on the return itself and using information obtained from employers and financial companies, assessing for errors. A taxpayer who disagrees with CRA's assessment of a particular return can appeal the assessment, and at this point many in Canada appoint a tax lawyer. The appeal process begins when a taxpayer formally files an objection to the CRA assessment. The objection is required to explain - in writing - the grounds for the appeal, as well as all related and supporting facts. The appeals branch of CRA then reviews the objection. The appealed assessment can be either confirmed, vacated or varied by the CRA. If the evaluation is confirmed or varied, the individual - or their lawyer - can appeal the verdict to the Tax Court of Canada, and subsequently to the Federal Court of Appeal.

The total of income tax that a taxpayer has to pay is based on the sum of their taxable income - the amount earned, minus qualifying expenses) for that tax year. Personal income tax can be collected through a number of means:

1. deduction at source - the income tax is deducted directly from a person's pay and sent to the CRA.

2. installment payments - an individual pays his or her taxes, estimated according to income, during the year as an alternative to waiting paying the lump sum at the end of the year.

3. payment on filing - payment is sent in with the income tax return

4. arrears payments - payment is made after the return is filed

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